Lucapa Diamond and its partners have secured extension from the Government of Angola to mine alluvial diamonds at the Lulo diamond project.
The parties have formed Sociedade Mineira do Lulo Lda, in which Lucapa owns a 40% beneficial stake, to mine diamonds at the project.
The expanded mining licence is for a minimum period of 10 years with no additional cost. It covers 1,500km² of area, when compared to the original area of 218km².
It extends beyond the Cacuilo River to include the Lulo River and its southern tributaries.
Lucapa said the tributaries drain the main Lulo kimberlite field in the south and the kimberlite province in the north.
The company did not undertake any sampling in the Lulo river system area which is expected to add to the potential life of mine of the mining firm after its ongoing mining campaign along the Cacuilo river.
However, the company said the area may also host Type IIa diamonds due to the drainage off the existing proven diamond field towards the Lulo River
Lucapa operates the 3,000km2 Lulo Diamond Concession in Angola’s Lunda Norte diamond area.
Lulo hosts 296 kimberlite targets in two separate provinces, of which 96 are proven and probable kimberlites and four are diamond-bearing pipes.